Hyundai Rotem set to finalize $6 bn K2 tank order from Poland

Hyundai Rotem Co., a South Korean defense company, is set to finalize a tank supply contract with Poland, with the deal's value nearly doubling to around $6 billion, compared to the previous agreement.

A signing ceremony for what would be the largest-ever weapons export by a South Korean company is scheduled to take place in Poland later this month, according to government and defense industry sources on Tuesday.

Under the preliminary contract inked in 2022, Hyundai Rotem will supply 180 units of the K2 Black Panther, a next-generation main battle tank, to the Baltic nation. It marked South Korea’s first-ever export of such battle tanks.

The first batch of 10 tanks was delivered in December 2022.

Of the 180 K2 tanks, Hyundai will directly produce 117 units, while Poland’s state-run defense group PGZ manufactures the remaining 63 units -- dubbed K2PL -- a variant customized to the Polish Armed Forces.

The latest K2 tank deal matches the 2022 order in volume, but carriers a price tag nearly double the previously estimated $3 billion, reflecting upgrades.

The K2PL is a more advanced variant, locally manufactured under technology transfer terms. The package also includes maintenance, repair and operations (MRO) support, along with auxiliary vehicles like armored recovery and bridge laying tanks.

The agreement was initially expected by the end of last year, but was delayed following the ill-fated martial law declaration by former South Korean President Yoon Suk Yeol in December.

The K2 tank shipments are part of a broader $15 billion contract forged in 2022 between South Korea’s weapons makers and Poland’s defense authorities.

The procurement package also encompass the sale of Korea Aerospace Industries Ltd.'s FA-50 light fighter aircraft, and Hanwha Defense Co.'s K9 self-propelled howitzers.

The total contract value has risen to an estimated $22 billion after Poland added the K239 Chunmoo multiple rocket launchers, developed by Hanwha Defense, to its list of weapons purchases from South Korea.

Yeonhee Kim edited this article.